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by S.P.Vinoth rajah
COMPANY INTRODUCTION
Berger Paints India Limited is an Indian paint company which operates chiefly in India headquartered in Kolkata. It has come a long way since its inception in 17th December, 1923. Indias second largest decorative paint player, Berger Paints services the market through a distribution network of 82 stock points and 12,000+paint retailers.
MARKET SHARE
Source- www.equitymaster.com
19%
19%
12%
Kansai Nerolac
ICI Paints Other Brand Paints 30% 20%
OBJECTIVES
Primary Objective:
To identify the drawbacks, why the market share of Lewis Berger paints is less when compared to other competitive
products.
OBJECTIVES
Secondary Objectives:
To study the presence of other similar brands in the
different channels and compare it with Berger Paints. Our work comprised of visiting different places, to reach out to 100 retail counters in the specific area. To find out the necessary steps to overcome the drawbacks Berger Paints.
RESEARCH METHODOLOGY
Research Design:
Descriptive research design.
Data Source:
Primary Source Paint Dealers. Secondary Source Records of the company and Internet.
RESEARCH METHODOLOGY
Data Collection Method:
Survey Method: By personal interview using framed questionnaire.
Sampling Design:
Stratified Sampling. Size: 100 respondents.
BRAND
15% 14%
6%
12%
NEROLAC OTHERS
COMPANY Berger
NUMBERS 24
53%
Asian
ICI Nerolac Others
90
20 11 26
MACHINE
BERGER ASIAN ICI NEROLAC OTHERS
3% 11% 5% 13%
COMPANY BERGER
NUMBERS 14
ASIAN
ICI
68%
73
12 3 5
NEROLAC OTHERS
50.0%
40.0% 30.0% 20.0% 10.0%
0.0%
0 - 1 Lac 3 Lacs & Below 6 Lacs & Below 10 Lacs & Below Above 10 Lacs
DEALERSHIP (%)
70 60
50
40 30 20 10 0
Paints 26 33 18 15 8
Hardwares 38 23 27 13 0
Tiles 0 33 67 0 0
Electricals 11 16 32 42 0
Cement 10 17 43 30 0
Steel 4 26 0 70 0
CUSTOMER PROFILE
CUSTOMER PROFILE (%)
14%
CUSTOMER PROFILE
House Owners
37%
NUMBERS
16%
House Owners
99
Painters
90
33%
Contractors
42
Engineers
39
NUMBERS
63 6 6
Contractor
Engineer Neighbour Own Decision
Contractor Engineer
10% 4%
3%
Neighbour
Own Decision
17
75
DELIVERY PERIOD
90.0% 80.0%
70.0%
60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
20.0%
10.0% 0.0%
20.0%
10.0% 0.0%
Yes No
Asian 99% 1%
Berger 100% 0%
ICI 95% 5%
Nerolac 100% 0%
Others 96% 4%
Yes No
Asian 99% 1%
Berger 100% 0%
ICI 100% 0%
Nerolac 100% 0%
Others 100% 0%
CONCLUSION
Berger is the 2nd largest decorative paint company and third largest paint manufacturer in India. Berger Paints is following continuous growth strategy. The installed capacity as in FY10 for synthetic resin was 32,287 Metric Ton (MT) per annum while paints, varnishes and enamel together have an installed capacity of 240,315 MT per annum. The major competitors are Asian and Nerolac . With proper marketing mix and strategy the company
LIMITATIONS
Since regions from where researcher has to collect the data was pre specified so some of the regions which were not stated were left out. Some of the dealers were hesitant in providing the information due to lack of trust and familiarity with the researcher. In some shops the real owners was not there so information may not be perfectively up to the point. Some of the dealers were inflating their sales figures. Only some areas were chosen for survey, so it cannot say the overall reports. Few dealers dont have the awareness about the survey, so they were scared to provide the data.
SUGGESSTIONS
The advertisement is given for only few brands like silk, weather coat, Luxol, Rangoli easy clean. Therefore the company needs to emphasize more on the promotion of sub-brands. The advertisement can be made in a funny manner which would easily reach the customers. Advertisements can be given in south Indian TV channels. Banners can be given to dealers as a part of promotional activity. People are not aware about the products of Berger paints so that promotional activities are very much necessary. More and more women can be found perusing the shelves at paint stalls in search of the right type of paint for their homes. So the company can target this new set of interested customers by increased advertising in women magazines.
Distribution and transportation can be improved. The services provided by the company on the website are not being used because of the low penetration of internet in India. So we recommend that these facilities should be made available at the point of purchase. Berger could also target few new customers of the same area and give them gift item. This would make customers feel special and the positive word of mouth, a factor of customer loyalty, can be achieved. However it is suggested that this should be done on a trial basis, for a yearlong period. If the outcome is not fruitful, Berger can always terminate the idea.
A one year period can be used for proper evaluation of the dealers, whether or not they are making proper used of the improved financial benefits. Upon assessment of the dealers after one year, few inefficient dealers could be terminated. This would increase competition within the dealers, and thus increase productivity.
As there are already many dealers in the urban areas the main focus can be to increase the sale of paints in rural areas by increasing the availability in the form of making new dealers. Dealers need to improve their approach in selling the Color Bank option, for which Berger can give more emphasis towards the dealers. Dealers play a vital role to attract consumer and they are the one who can convince people buying behavior. Berger Paints is already in a good position and they successfully can keep good relation with the Dealers but their approach should be more dynamic and more prompt.